The Ministry of Food Processing Industries (MoFPI) has stepped up efforts to modernise and expand India’s jaggery processing sector by extending financial incentives and infrastructure support through key central government schemes.
Under flagship programmes such as the Pradhan Mantri Kisan SAMPADA Yojana (PMKSY), the Production Linked Incentive scheme for Food Processing Industry (PLISFPI) and the Pradhan Mantri Formalisation of Micro Food Processing Enterprises (PMFME) scheme, the ministry is incentivising the establishment and expansion of modern jaggery processing units across the country. These initiatives are designed to encourage the adoption of improved technologies, enhance product quality, and ensure compliance with Food Safety and Standards Authority of India (FSSAI) regulations, thereby facilitating better market access and export potential.
As of December 31, 2025, MoFPI has sanctioned support for five modern jaggery processing units under the Creation/Expansion of Food Processing & Preservation Capacities (CEFPPC) component of PMKSY, with total grants amounting to Rs 17.07 crore. Additionally, under the PMFME Scheme, 3,528 micro food processing enterprises focusing on jaggery processing have been approved for subsidies totalling Rs 102.31 crore.
To further strengthen value chains, the government is promoting a One District One Product (ODOP) approach for jaggery and allied products in 19 districts, enabling firms and groups to benefit from economies of scale, shared services and enhanced marketing frameworks. Under PMFME, groups including Farmer Producer Organisations (FPOs), Self-Help Groups (SHGs) and cooperatives can access up to 50 per cent grants for branding and marketing support, aimed at boosting competitiveness in domestic and export markets.
Officials emphasised that these targeted incentives and infrastructure upgrades will help improve quality standards, reduce post-harvest losses, and foster growth in the jaggery and broader food processing industry, contributing to rural employment and farmer incomes.
